What action is NOT considered commingling of funds?

Keeping personal and client funds in separate accounts is the action that is not considered commingling of funds. Commingling occurs when a broker combines client funds with personal funds or uses client money for personal or business expenses, which can lead to a number of legal and financial repercussions.

When client funds are kept in a separate account, it ensures that those funds are protected and identifiable, which is crucial for maintaining trust and transparency in the broker-client relationship. This separation is essential for compliance with regulatory standards that govern the real estate profession, as it helps to mitigate the risk of misappropriating client funds.

In contrast, the other options illustrate what commingling looks like. Depositing client funds into a business account mixes those funds with the broker’s operational finances, using client deposits to pay business expenses puts client money at risk, and mixing funds of different clients in one account makes it difficult to account for individual client transactions and obligations. These practices violate ethical and legal standards within real estate transactions.